- It’s a decreasing term assurance policy to secure loans when the borrower passes away or becomes totally permanently disable.

- Outstanding loan + interest due at the date of death is paid as per the repayment plan.

Death: all circumstances

Total Permanent Disability: In event where the debtor is permanently prevented from earning his normal income as a result of illness or bodily injury due to accident and there is no reasonable expectation of recovery.

It’s the most basic form of life policy covering a specified period of years. The sum assured will only be paid in case of death within the specified term. The sum assured is constant as opposed to loan protection.

Sum assured remain constant throughout the policy term.

Features:

- There is no surrender value. On survival of term, nothing is payable

- Policy serves as a security for loans

Group Life Assurance Plan is designed to provide Death in service benefits, which pays out in the event of the member’s death while still a member of the group.

The benefits or Sum assured is usually fixed or related to a multiple of one’s annual salary. The benefit is determined by the Employer/Organization because the cost (Life cover premium) is borne by them.

Group Life policy is based on the Yearly Renewable Term (YRT) where the premium for the year’s coverage is calculated.

The premium is based on the individual’s age and the selected Sum assured.

The premium for the whole scheme is the sum of the individual premiums.

The plan has the following additional / supplementary covers:

- Total Permanent Disability cover

- Funeral/ Last expenses cover

- Critical Illness cover

- Disability loss of income cover

- Retirement Plan

The employer could pay the totality of the premiums on behalf of the employees or participate up to a certain percentage considered adequate and the balance to be paid by employees themselves.

This policy can serve as a security for loans.

Master policy and individual certificates are issued.

Definitions:

Total Permanent Disability

Total permanent disability is defined as disability resulting from bodily injuries or illness which totally prevents the Assured from engaging in any business or occupation and from performing any work for compensation or profit and which disability has continued uninterrupted for a period of at least six (6) months

Funeral/ Last expenses cover

The Insurer will pay the benefits as shown on the Schedule of benefits or the endorsement in the event the Assured decease while in service.

Critical illness cover

Events on which the benefits become payable :

This benefit shall become payable if it has been diagnosed by a qualified Doctor that during the period of cover the Life Assured has suffered from or developed one of the following diseases:

- Heart Attack

- Coronary Artery Surgery

- Stroke

- Cancer

- Kidney/Renal Failure

- Aorta Surgery

- Replacement of Heart Valve

- Paraplegia

- Blindness

- Major Organ Transplant

- Major burns

- Coma

The maximum benefit any Employee may receive from the scheme is 50% of the Sum Assured of the basic policy up to a maximum of RWF 3.500.000.

Disability loss of income cover

Disability Loss of Income cover offers financial protection in the case of an Insured’s prolonged incapacity.

The level of benefit is related to the Insured’s normal income.

For the purpose of this cover, disability is defined as “totally disabled by reason of injury or illness from following the employee’s usual occupation or any other to which he may be reasonable suited by training, education or experience”.

The Policy will commence payment of benefit after six (6) months continuous disability.

The maximum benefit any Employee may receive from the scheme is 75% of pre-disability monthly salary for two years.

Premiums will be waived in respect of an individual who is receiving benefits.

Retirement Plan

Benefits :

In event of the Policyholder’s death before the Policy matures the Company shall make payable the funds allocated to such a Policy.

Subject to the premiums due in the first three years policy having been paid and the Policy having remained in force for three complete policy years, the Company shall grant a surrender value of 100 % of the mathematical provision.

Loans are made by the Company on the security of this Policy within the surrender value at the rates of interest fixed by the Company from time to time.

Pure Defined Contribution Schemes

- Employers have appointed SONARWA to manage pension assets for their employees on a pure defined contribution basis.

- All interest earned is credited to the pension plan.

- There is no guarantee.

- SONARWA undertakes administrative activities for the scheme in terms of member records.

- SONARWA charge a management fee for the service rendered based on the assets under management.

- Payment of benefits is made at normal retirement date or early cessation of service from the employer.

- All interest earned is credited to the pension plan.

- All interest earned is credited to the pension plan.

Defined Contribution Schemes combined with Life Insurance Products

- The plan offers pension savings and life insurance covers

- Contributions are split to fund pensions and life insurance/risk covers

- SONARWA offers an interest minimum guarantee of 4% per annum

- However there is a form of profit sharing between SONARWA and the client

- The pension portion is a defined contribution arrangement with member accounts and accrued benefits based on contributions and distributed investment income.

- Benefits are often paid at normal retirement date or early exit from employment.

GENERAL EXCLUSIONS FOR LIFE PRODUCTS

- Suicide

- Murder by a beneficiary

- War and related risks

- Nuclear/radioactive contamination

- Acts of sabotage & terrorism

- Riot, strike and civil commotion